2. When Frank thought he had gathered enough ideas about dividend theory and policy, he asked the following question: "Let's say we decide that our shareholders want some kind of distribu- tion. What's the best way to do it? Evaluate the merits of the following suggestions. a. How about a 20% or 30% stock dividend? They will feel as if they're getting something, and it won't use any cash b. "Our stock has been trading between $65 and $80 for the last year. How about a 2-for-1 or 3-for-1 stock split? c. What about a stock repurchase plan?"| d. Frank: Nice thoughts, but the institutional investors seem to be the ones asking for dividends. They won't be easily fooled. Let's focus on cash dividends for now.?! 3. Assume an investor holds 1,000 shares of East Coast stock, which is trading at $72 per share immediately before the following actions. Calculate the probable value of the stock, the amount of cash received, and total investor wealth immediately after the following actions. Consider each action independently. a. East Coast pays a 20% stock dividend. b. East Coast splits its stock 3-for-1. c. East Coast pays a $2.00 per share cash divi- dend. The tax rate on dividends is 15%